Bill Text: IL HB0856 | 2009-2010 | 96th General Assembly | Introduced

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Bill Title: Amends the Residential Mortgage Licensing Act of 1987. Provides that whenever a licensee seeks to transfer or sell the servicing of a residential mortgage, the licensee must retain a 25% interest in the servicing of the residential mortgage. Effective immediately.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2009-03-13 - Rule 19(a) / Re-referred to Rules Committee [HB0856 Detail]

Download: Illinois-2009-HB0856-Introduced.html

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96TH GENERAL ASSEMBLY State of Illinois 2009 and 2010 HB0856 Introduced 2/10/2009, by Rep. Kevin Joyce SYNOPSIS AS INTRODUCED:
205 ILCS 635/3-7 from Ch. 17, par. 2323-7
Amends the Residential Mortgage Licensing Act of 1997. Provides that whenever a licensee seeks to transfer or sell the servicing of a residential mortgage, the licensee must retain a 25% interest in the servicing of the residential mortgage. Effective immediately.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning financial regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Residential Mortgage License Act of 1987 is
amended by changing Section 3-7 as follows:
(205 ILCS 635/3-7) (from Ch. 17, par. 2323-7)
Sec. 3-7. Transfer of servicing; notices; retention of
interest in servicing. Transfer of Servicing; Notices.
(a) Whenever the servicing of a residential mortgage is
transferred or sold by a licensee, notice shall be given to the
mortgagor simultaneous with such transfer and shall include, at
the minimum, where and to whom to address the mortgagor's
questions relating to the residential mortgage, the exact name,
address and telephone number to whom at least the next 3 months
payments are to be submitted and the total amount required of
the mortgagor by the servicer for each of the months referred
to herein.
(b) Whenever a licensee seeks to transfer or sell the
servicing of a residential mortgage, the licensee must retain a
25% interest in the servicing of the residential mortgage.
(Source: P.A. 86-137.)
Section 99. Effective date. This Act takes effect upon

HB0856 - 2 - LRB096 09404 MJR 19561 b
becoming law.